Huachuang Securities·2025-04-30 09:02Investment Rating - The report maintains a "Recommendation" rating for CITIC Bank, with a target price of 8.23 CNY / 6.78 HKD [2][6]. Core Views - CITIC Bank's core revenue growth remains stable, with a balanced development strategy. The bank reported a revenue of 51.77 billion CNY in Q1 2025, a year-on-year decrease of 3.72%. However, operating profit increased by 4.22% to 22.805 billion CNY, and net profit attributable to shareholders rose by 1.66% to 19.509 billion CNY. The non-performing loan ratio remained stable at 1.16%, while the provision coverage ratio decreased by 2.3 percentage points to 207.1% [2][6]. Financial Performance Summary - Revenue and Profitability: In Q1 2025, CITIC Bank's core revenue showed a decline of 3.72% year-on-year, with net interest income and net fee income still achieving positive growth of 2.1% and 0.7%, respectively. The net profit growth of 1.66% indicates effective cost management, with business and management expenses down by 3.3% [6][7]. - Loan and Deposit Growth: The bank's interest-earning assets and loans grew by 8.2% and 5.1% year-on-year, respectively. The growth in corporate loans was particularly strong, with general corporate loans increasing by 10.6% [6][7]. - Asset Quality: The non-performing loan ratio remained stable at 1.16%, with improvements noted in corporate loans. However, retail loan quality faced some pressure, particularly in credit card loans [6][10]. - Future Projections: The report adjusts the revenue growth forecasts for 2025-2027 to 0.6%, 4.1%, and 5.7%, respectively, and net profit growth to 1.5%, 3.0%, and 5.0%. The target price reflects a price-to-book ratio of 0.62X for 2025E [6][7][8].